Hiring a business broker Orange County is the first thing you should always do when getting ready to sell your business. Even so, some people choose to sell on their own or even work with other professionals. After selling a house or piece of property, it is easy to assume that a real estate agent will be equipped to sell your business. The truth is he will not. In this post we will be taking a look at the top reasons why you should leave the sale of a business to a business broker and not any other professional.
Not constantly involved in the sale of businesses
The first reason why it makes sense to work with business brokers Orange County is because other professionals are not constantly involved in the sale of businesses. With experience comes wisdom, wisdom to do things in a unique way that guarantees remarkable results. This is what you get from working with a business broker. A real estate agent is involved in the sale of homes and properties. He lacks the knowledge on how a business should be prepared and sold. As a result, the support you get from him will be more than lacking. He will have to learn on the go hence rely heavily on guesswork. This is not the case with an experienced business broker who has already sold many businesses like yours before.
His training and education is not focused on the sale of businesses
Another reason why you should only stick with a business broker is because real estate agents give training and education that is completely different from what business brokers get. A business broker Orange County understands the complexities of selling a business and knows what is involved to market and present a business for sale effectively. They know how to maintain full confidentiality throughout the sale. Brokers have also honed their skills in the complexities of negotiating and accounting. What is more is that the marketing channels and networks used by a broker are different from those used by real estate agents.
His professional network is not made of business brokers
The grand reason why you should leave the burden of selling your business to a business broker is because the professional networks of the broker are made up of other professionals involved in the sale of businesses. This is the same way as the network of real estate agents is made up of other real estate agents. The memberships of the business broker are different from those of a realtor.
All things considered, working with a business broker Orange County when selling a business is the safest bet. You wouldn’t let a car salesman sell your business, would you?
Your business broker San Diego may recommend that you offer seller financing. This is an option in which you allow the buyer to make payments over a set period of time often 3, 5 or 7 years. But what makes this a great idea? In this post we will be looking at the main reasons why offering seller financing is a great idea.
Reduce marketing times
When a business doesn’t sell for long, the next best step is to change the terms and also reduce the selling price. Rather than reduce the price, business brokers San Diego recommend that you offer financing to buyers. This is where seller financing comes in. When financing is offered to buyers by the seller, more buyers will be interested in your business. This is because the buyer will not only pay a small down payment but also take advantage of favorable repayment terms and also the fact that the business owner will continue to have vested interests in the business that is being sold.
Attract more buyers
The more buyers you attract the more competition there will be and the better the bargain you will get when selling your business. Buyers understand the benefits of seller financing. When you offer this option, you will increase the marketability with a wider group of available purchasers. Another reason why you get more buyers is because about 40% of the American population is not able to quality for the traditional bank financing. Seller financing makes them eligible. Seller financing thus widens the market of prospective buyers remarkably.
Reduce closing times
Closing often involves third-party conventional lenders. This can take up to 8 weeks thus delaying closing. With seller financing, you can close within 3 weeks. This is because there are less paperwork as well as a less restrictive due diligence process.
Strategy for hard to finance businesses
If your business is hard to sell, your business broker San Diego can recommend seller financing. There are certain businesses that face financing difficulties. This is more so if a business has not been doing well. Offering seller financing helps bypass conventional loans and attracts more buyers.
The grand beauty of offering seller financing is that you will benefit from interest income. Once the down payment has been paid, you will continue earning regular income from the sale. You will get a higher return since you will not only defer income tax but also continue earning the interest. Typical interest rates are between 4% and 7%. What is more is that since you will not be getting paid a huge lump sum of the money, you will avoid falling into a higher tax bracket.
There are numerous benefits that come with seller financing. Your business broker will help negotiate the best terms and help you know if seller financing is a great option for your business or not.